No timelines set for trade deals with US, says Ntshavheni

The government has put no timelines to its discussions on bilateral trade agreements with the US.

Minister in the Presidency Khumbudzo Ntshavheni said on Thursday there can be no deadlines attached to any clinched deals as agreements will be staggered.

“There is a basket of offerings that have been tabled through the department of trade, industry and competition, working with the department of mineral resources & energy, department of agriculture, and other departments,” she said.

According to the minister, the various deals will be signed as they are finalised.

“There are many discussions taking place, for example on poultry, pork and citrus. If we close a deal on pork tomorrow, because we are a net importer of pork, why should it wait for a discussion on energy and gas that may only be closed in two months' time?

“So as the deals and areas of agreements are reached, they will be implemented. The US remains one of our strategic partners so we will want to work and conclude those as speedily as possible.”

President Cyril Ramaphosa led a delegation, which included Ntshavheni, to the White House to reset and strengthen bilateral relations between the two countries after allegations of persecution of white South Africans by US President Donald Trump's administration. 

“The issue of relations between South Africa and the US was an issue that occupied the minds of many people in our country. Many were concerned about the deteriorating relationship between our two countries, having recognised the important roles we play in each other’s economies, apart from various political and diplomatic relations,” said Ramaphosa earlier this week.

Ntshavheni reported the two countries will discuss not only tariffs but also non-tariff barriers.

“We have proposed that we need a quarter of 40,000 vehicles manufactured in South Africa to enter the US in the current no tariff arrangement. There was a discussion about critical minerals, which is in everybody’s interest, but you’ll recall that in the previous cabinet meeting we approved a critical minerals strategy driven from the fact that we are no longer exporters of sand and rock.

“We are going to beneficiate at source or nearest to source and that discussion must be framed within the provision of our critical minerals strategy. There are licensing requirements to mine in South Africa and we have indicated that if they want to mine they must partner with those who already hold exploration or mining licences.”

She said the cabinet welcomed the “reset of strategic relationships” between Pretoria and Washington, adding they look forward to the US’ continued participation.

“The South African and US teams will finalise the details of trade deals. It is safe to emphasise the objectives South Africa had set have been met.”

Trade, industry and competition minister Parks Tau previously told TimesLIVE Premium South Africa submitted to the US government a framework that seeks to balance and promote bilateral trade and investment.

“Given that the expectation from the US side was for countries to address the issues around trade deficit and non-tariff barriers to trade, the framework includes elements that address these issues and will be subject to negotiations between our two countries.

“The elements include procurement of gas from the US, addressing agricultural market access from both sides, promoting two-way investment, co-operation on critical minerals, co-operation among our development finance institutions and discussion on tariffs — in a manner that protects the common external tariff — and digital trade. All this will be done in a manner that preserves regional integration and industrial capabilities. The request from the South African side, among others, is for a maximum tariff of 10% while the two countries conduct negotiations,” Tau said.

He added that the gas element of the package was twofold. “First, to work on import of gas from the US to ensure security of supply and cater for domestic needs. Further, given the discovery of shale gas in South Africa, there is a need for co-operation on technologies,” Tau said.

TimesLIVE